Britain to go to the IMF?

[afleitch]

http://www.telegraph.co.uk/finance/financetopics/financialcrisis/5101950/Britain-should-not-fear-asking-for-IMF-cash.html

'Economists have warned that the UK's public finances are in such a bad state there is a real possibility that Britain will seek help from the fund.

The G20 agreed this week to establish a new scheme, controlled by the IMF, which countries of all backgrounds can go to if they are experiencing financial problems.

That coincided with a concerted push by British ministers to argue that there would no longer be any stigma attached to asking for cash.

The previous Labour Government's bail-out by the IMF in 1976 was seen as a national humiliation and helped sweep the party from power for 18 years.

A senior Cabinet minister said, however, that the new fund would not be like the 1970s version and should not be seen as such. He said there would be nothing wrong if America or Britain used the facility.

He said: "Previously a country would only go if they were in a very bad state. It was a bit like going to accident and emergency to get urgent help.

"This new facility will not be like that. It is a bit more like getting wellbeing care or even like going to a spa to recuperate."

World leaders agreed in London to increase resources available to help economies in trouble to $750 billion.

Gordon Brown said in his closing comments to the G20 summit that countries like Mexico, which is not in immediate danger of economic collapse, were considering using the IMF.

Stephen Timms, the Treasury minister, and Lord Mandelson, the Business Secretary, said this would remove some of the "stigma" of using the facility.

Mr Timms was quoted as telling a meeting earlier at the G20 that Mexico's move showed "we have gone beyond the era of stigma."

Mr Brown, when asked whether Britain would now be free to use the system, replied that he was "not proposing to do so".

But yesterday Simon Johnson, the former IMF chief economist, said: "In the past, you got loans from the IMF when you were facing complete disaster. Now the IMF is going to come in before you get into real trouble.

"Gordon Brown and his ministers, they need help. Your economy is in big trouble." '

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It appears that there is an offensive to 'soften up' the fact that Britain may go to the IMF for financial assistance. It will be very difficult to get good PR on this one...especially among older voters.

[Sam Spade]

Seems to me quite obvious that this is where Britain will go.

Doesn't save them from their fate, however.

[2952-0-0]

Hang on here.

I thought the IMF was essentially bankrolled by the big dogs like US, UK, Eurozone, Japan, etc.

What happens when one of those big dogs needs IMF aid?

Do we get a global Iceland-like disaster?

[k-onmmunist]

Jesus Christ... thanks alot Thatcher and Blair.

[Bono]

Jesus Christ... thanks alot Thatcher and Blair.

Yea, this is clearly Thatcher's fault. 

[k-onmmunist]

Jesus Christ... thanks alot Thatcher and Blair.

Yea, this is clearly Thatcher's fault. 

If she hadnt ruined our manufactoring sector, we would be able to better cope with this recession.

[Beet]

The British pound is surging. This worries me first and foremost because it makes British exports less competitive, which hurts British industry. It seems to me the strategy of QE was superior to going to the IMF. You see what happened to Indonesia in 1998.

If you're in Britain, now may be a good time to acquire overseas assets. It may be a good time for British companies and authorities to pay off overseas debts, or exchange overseas debts for domestic debts.

[opebo]

Seems to me quite obvious that this is where Britain will go.

Doesn't save them from their fate, however.

Oh christ.  You tease.  What is the fate?

I want to wring this oracle's neck.

[Beet]

Seems to me quite obvious that this is where Britain will go.

Doesn't save them from their fate, however.

Oh christ.  You tease.  What is the fate?

I want to wring this oracle's neck.

A currency crisis. Hyperinflation. Default. Possibly revolution. Then who knows? Dictatorship?

[opebo]

A currency crisis. Hyperinflation. Default. Possibly revolution. Then who knows? Dictatorship?

Oh ok.  Just SS fantasy.

[The Man From G.O.P.]

Jesus Christ... thanks alot Thatcher and Blair.

Yea, this is clearly Thatcher's fault. 

If she hadnt ruined our manufactoring sector, we would be able to better cope with this recession.

You need some more time in school.

[k-onmmunist]

You need some more time in school.

You only need to check the unemployment statistics for proof. Thatcher was dreadful for the economy. She put millions out of work, inflation rose so much that the dollar almost reached parity with the pound, she put us on the ERM and finally, just to top it all off, introduced a poll tax.

Only good thing she did was Falklands War, and its not like she had much choice there, if she wanted to be re-elected. Major briefly undid some of the damage, as did Blair early on, but now we're facing the same thing again.

[afleitch]

You need some more time in school.

You only need to check the unemployment statistics for proof. Thatcher was dreadful for the economy. She put millions out of work, inflation rose so much that the dollar almost reached parity with the pound, she put us on the ERM and finally, just to top it all off, introduced a poll tax.

Only good thing she did was Falklands War, and its not like she had much choice there, if she wanted to be re-elected. Major briefly undid some of the damage, as did Blair early on, but now we're facing the same thing again.

Take a look at manufacturing figures before and after Thatcher - right through to the present in fact.

[Serenity Now]

Jesus Christ... thanks alot Thatcher and Blair.

Yea, this is clearly Thatcher's fault. 

If she hadnt ruined our manufactoring sector, we would be able to better cope with this recession.

You need some more time in school.

You need some more time in school.

(Pretty crappy line of argument, isn't it?).

[The Man From G.O.P.]

Jesus Christ... thanks alot Thatcher and Blair.

Yea, this is clearly Thatcher's fault. 

If she hadnt ruined our manufactoring sector, we would be able to better cope with this recession.

You need some more time in school.

You need some more time in school.

(Pretty crappy line of argument, isn't it?).

He started it.

[jokerman]

If Britain's borrowing then who exactly is lending to this IMF bailout?